The Iran war set off the “most severe oil supply shock in history,” the International Energy Agency (IEA) said in a new report on Tuesday, warning that high prices would slash demand for crude, the primary lifeblood of the global economy.
In March, oil prices notched their largest one-month gain ever, the IEA said.
The IEA – a Paris-based group made up of 32 member nations, including the U.S. – warned of a widespread bout of “demand destruction" in the report. Under such a scenario, high prices would make oil unaffordable for many buyers, forcing them to find alternatives or forgo energy use altogether.
I’m in the states and wondering when the shock will really hit us. I’m looking at local gas prices (Upstate NY) and they’re high; just not a sigh as I’d expect them to be. Certainly not high enough to curb demand in any meaningful way.
Expecting Europe to really get it late April, USA mid May.